13th November 2009
The income tax rate increases and reduction in tax relief for pension contributions have prompted an increasing number of people to consider leaving the UK to live elsewhere. If individuals do decide to leave the UK, or are already living abroad, they should consider whether they should leave any UK pension rights here, or move them overseas. QROPS, represent a valuable investment and tax planning opportunity for individuals with UK pensions rights who are not resident in the UK or who are considering leaving the UK very shortly
Some of the main benefits of QROPS are -
- You are never forced into buying an annuity
- Your pension income will be paid to you gross
- After 5 complete and consecutive UK tax years of non-UK residency on your death your pension fund will cease to be liable to UK taxes of up to 82%, so you may be able to pass all of the remainder of your fund to your heirs
- Within your QROPS, your assets can be held and paid to you in a currency other than Sterling, so that you can remove the exchange rate risk and exchange rate costs on your pension
Here at Rollingsons we work closely with pensions experts and our knowledge of the ever changing UK pension rules and options combined with our expertise on overseas taxation means that we can help you structure your pension and retirement benefits in a manner that minimises your taxes.
If you would like further advice and assistance on this matter then please contact head of Private Client on 020 7611 4848 or by e-mail ghughes@rollinsons.co.uk to arrange a consultation.
